Saudi Arabia expects Russia to cut output by more than 1.6 mln barrels per day

It was reported late on Wednesday that Russia is ready to discuss a cut of its crude output by 14% compared with the average production level in the first quarter of 2020, or by 1.6 mln barrels per day, according to a representative of the Energy Ministry speaking with TASS.

"You (Russia) should agree on a deeper reduction," a source familiar with Saudi Arabia’s position told TASS without specifying what volume the Saudi side will be satisfied with. Reuters said earlier with reference to sources that Moscow is ready to discuss output reduction by 2 mln barrels per day as well.

Meanwhile, the issue of reduction volumes is not the only one between the partners. The sides have not yet reached a consensus on the level that is suggested to be a basis for reduction by 10 mln barrels per day, two sources in the organization told TASS. "Saudi Arabia still wants to reduce only from 12.3 mln barrels per day," one of them said. Another source confirmed that the cutoff point "is a stumbling block so far."

The OPEC+ ministers’ talks will be held on Thursday at 4:00 pm Moscow time as a webinar.